Thanks everyone! After spending many sleepless nights, and going one way and then another, I've decided to give this a shot. I start my new payment from Spe 1st, and this is about half of my original (which was around $2600). Now my PI+TI = $1200, plus another $250 for escrow and insurance. Here's what I am planning to do. I will keep this for maybe another 6 months and then when I feel the housing market has reached a bottom, have my parents buy a house for me, at which point I will pay the monthly mortgage on their behalf. So at that point I will walk. I believe if they want to foreclose on methen, it will take them another 4-6 months, which means living free for another few months and getting my finance settled. Hopefully since AZ would still be non-recourse then, they would not be able to come after the $110K.
I'm hoping this will work. Well, one can only hope, and in my situation, beggars cannot really be choosers. It's the frying pan versus fire...
